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bonds of your state, as proposed in our communication to you of the 10th inst. After consulting with those co-interested with us, in the contract and agency made with you on behalf of your state, we have come to the conclusion that as we see no prospect of benefiting you by declining the offer now made to us, we conform to your views as now expressed to us, viz: “Can a better sale than the one proposed be effected, and would it be advisable or expedient to let the opportunity now presented ass 7” p We have, therefore, closed with the party making the proffer to purchase the whole of the unsold balance of your stock at par, upon the terms mentioned in our letter of the 10th inst. When we first assumed this agency, considering the large amount of the undertaking, and the importance of dividing the risk and combining larger influence in bringing it savorably into the European market, we invited several respectable individuals and institutions to unite with us. These parties have now consented to become purchasers of the portion held by them at par, and thereby enable us to report to you the entire close of your stock at that rate, less our commission. We are free to confess, that the recent advices from Europe of the great and unexpected accumulation of Americation securities offered at low rates, and the fact that some of the most undoubted state stocks have been urged upon that market by banking-housses, whose connection with this country had led us to expect a different course, have inspired no little apprehension of unpleasant results, and have caused us for some time past, to feel that the commission stipulated for forms but an inadequate compensation for continuing the risk of the foreign market. In corroboration of these views, it is in our power to state, that Charles Butler, Esq., of this city, whose reputation is known to you, and who is now in London, having in his charge the interests of one of the institutions concerned in the contract, writes under date of the 26th October, most discouragingly as to the prosK. of a favorable result to the Michigan bonds held by the essrs. Rothschilds, and of the apparent want of confidence in these securities. Other banking-houses of the highest respectability in London, give a very gloomy aspect to the feeling in reard to American securities, and the Great Western has actually rought back a large quantity of Arkansas bonds, payable in Fo from utter inability to realize except at immense sacrice. In addition to all this, sterling six per cent Alabama bonds have recently been sold in this city at 103, and more are offered at the same rate, which would reduce the value of your bonds, (being payable in this country) to about 92.

Added to this, it is no small inducement for closing this sale, that by so doing we bring to the aid of your state all the influence which can be derived from the capital of the Bank of the United States, and the benefits of which may be experienced in the future financial transactions of Michigan. I remain, with great respect, Your ob’t serv't,

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Extract from the Letter of Charles Butler, Esq., dated London, 26th Oct., 1838, above referred to.

“I have seen the Messrs. Rothschilds several times within a few days, on the subject of the Michigan bonds, and find they have done nothing, nor do I find them any more favorably inclined towards them. I have said what I could to inspire them with confidence, and have urged them to hold on to the bonds until the period of disposition was more favorable.”

Treasurer's Account, ending December, 1838.
State of Michigan.
In the following accounts with H. Howard, Treasurer.

DR. To the following : For cash on hand, $735,072 60 For balance due the Treasurer on general account, by own drafts on the Michigan state bank, 7,960 74 $742,979 34 CR. By the following balances, viz: To credit of contingent fund, $1,023 16 University fund, 261 71 Sinking fund, 85,821 06 Internal improvement fund, 595,873 41 Allegan and Marshall railroad fund, 60,000 00

$742,979 34 H. HOWARD, Treasurer.

STATE TREASURER's OFFICE,
Detroit, Dec. 22, 1838.

S. T. Mason to E. R. Biddle, Nov. 11, 1838.

New York, Nov. 11, 1838.

Sir—Your favor of the tenth inst communicating to me a proposition for the sale of the Michigan state bonds under the agency of the Morris canal and banking company, has been duly received.

It is with regret I perceive, that the state of the European market is such as to render the sale of the Michigan bonds a matter of hazard and doubt. My expectation under the contract with your institution was, to realize, at least, par on the stock, and it is with extreme disappointment that I have presented to me the probability of losing the two and a half per cent commission, which covers your charges. I still cling to the hope that an immediate sale may not be imperatively necessary. But as the negotiation of this loan has been a most thankless and perplexing undertaking on my part, I feel unwilling to advise you in the premises.

The contract gives you a free agency to act as the interests of the state of Michigan may require. The questions to determine are, can a better sale than the one proposed be effected, and would it be advisable or expedient to let the opportunity now presented pass All this you must take the responsibility of determining. To the details of the proposition I have no objection, and only hope that you will be driven to an immediate sale under a proper regard to the interest of the state you represent.

I have the honor to be,
Your obed’t serv't,

S. T. MASON. E. R. BIDDLE, Esq., Vice President, &c.

Moneys received on account of Internal Improvement Fund.

Statement of moneys received on account of sale of Michigan state bonds to the Morris canal and banking company, as follows : 1838. Jan. 7. Gov. Mason's two drafts on Jno. Delafield, Esq. $90,000 60,000 —— $150,000 00 Jan. 3. Oliver Newberry, on his contract, $30,000 71

Brought forward, $ Feb. 6. Oliver Newberry, on his contract, 81,000 24. do do do 50,000 Sep. 19. do do do 39,000 July 11. Deposited in New York, by Governor Mason, to the credit of the Michigan state bank, Aug. 1. Gov. Mason's sundry drafts on Morris canal bank, 90 days, Sept. 1. do do do Oct. 1. do do do Nov. 1. do do do Dec. I. do do do June 16. Gov. Mason paid in Morris canal bills, $10,397 70 Governor Mason paid Prime, J - Ward & King's account, 8,963 30 Gov. Mason paid Jno. Delafield's account, 639 00 Dec. 12. Bills of the Morris canal and banking com

pany to apply on the January, 1839,

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200,000 00

80,000 00 250,000 00 100,000 00 100,000 00

100,000 00 100,000 00

20,000 00

100,000 00

100,000 00

$1,300,000 00

Credited to the internal improvement fund,
46 “Ypsilanti and Tecumseh railroad com-

pany, 44 “Allegan and Marshall railroad company,

1,180,000 00

60,000 00 60,000 00

$1,300,000 00

STATE TREASURER's OFFICE,
Detroit, Dec. 12, 1838.

H. HOWARD, Treasurer.

STATE TREASURER's OFFICE,
Detroit, Dec. 12, 1838.

SIR-Annexed I hand you a statement of moneys received on account of Michigan state loan, which includes the bills of the Morris canal and banking company, deposited with me, as per my receipts therefor. I am, very respectfully, Your obedient servant,

H. HOWARD, Treasurer. His Excellency Gov. Mason, Detroit.

Opinion of Chancellor Kent and D. B. Ogden, Esqrs., on the Question of Boundary.

New York, September 6, 1838.

SIR-I do myself the honor to enclose herewith an opinion on the question submitted under the concurrent resolutions of the legislature of Michigan. In pursuance of the liberty given me by your letters, I deemed it best and proper to associate David B. Ogden, Esq. of this city, with me as counsel. The case was submitted to him after I had examined it, but without any intimation of my opinion, until I found afterwards that he had arrived at the same conclusion. It appeared to me that Mr. Ogden stood in a rank for experience, judgment and character, with any of the profession, and was upon the whole, as unexceptionable and desirable as any associate I could select.

With the highest respect,
I have the honor to be,
Your Excellency's most obedient servant,

JAMES KENT.

To his Excellency Gov. MASON.

Opinion.

The undersigned counsel, to whom his excellency the Governor of the state of Michigan submitted a concurrent resolution of the legislature of that state of the 6th of April last, by which he was requested to obtain the opinion of counsel touching the legal right of the state to the tract of land on its southern border, commonly called the disputed ground, and the best mode of prosecuting the claim of the state thereto, respectfully report:

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